Orchard Funding sees new lending fall amid Covid-19

10th Jun 2020 09:30

(Sharecast News) - Finance company Orchard Funding said on Wednesday that while the Covid-19 pandemic has "significantly impacted" lending markets, it had not seen a material hit to its existing book.
However, Orchard cautioned that the coronavirus outbreak has impacted demand for new lending and as a result, the group's lending for the full-year was now pegged to come in below market expectations.

The AIM-listed group stated that while its lending was expected to be below market expectations, it was continuing to receive income indirectly linked to lending and that full-year revenues would still "come close" to current market expectations.

Annual costs were also expected to be lower as certain outgoings associated with its banking licence application had been deferred until the year ending on 31 July 2021. Accordingly, while additional provisions had been made for impairments as a result of Covid-19, Orchard now expects that full-year earnings will come in ahead of market expectations.

"Orchard is a resilient and cash generative business with a robust balance sheet. We are therefore responding to the impact of Covid-19 from a position of strength," said the firm.

As of 0925 BST, Orchard Funding shares had dipped 0.78% to 75.90p.